Trade Of The Day (Weekend) This is an experiment – if it pans out, it could become a monthly presentation at the OC Traders Meetings.

You’ve heard them before, many times I’m sure. Disclaimers You’ve heard them before, many times I’m sure.

Nothing Is Guaranteed! • Please understand, I am not a licensed broker or registered investment advisor. • This is not a recommendation to buy or sell any kind of security or trading of options. • I am simply sharing a trading strategy that I am doing with my own brokerage account. • Success of following this strategy is not guaranteed. As with all trades and trading strategies, there is a high degree of risk. This presentation is based on my limited personal experience. No advice is given or implied.

ASAY – 2.5 Yr Weekly Chart

Bear Flag Trade

InvesTools Graph – ASYS

InvesTools Graph – $SEMICO

ASYS – 9 Mo/D (chart)

ASYS – 9 Mo/D (indicators)

3 Month/Daily

Trading – Selection Criteria Short-term trade (days to weeks). Down-trending stock making lower highs and lower lows. High liquidity stock – average daily volume greater than 500,000 shares (1 million better).

Trading – Set Up Lower high. Lower low. Typically 2-5 day movement – flag. In a downward-trending channel. Moving Averages: Under 200MA (usually). 10MA, 20MA & 50MA downward-trending.

Trading – Entry Rules Select low price of the high day in the flag and add .20¢. Set SL (stop loss) 1% above the high of the high day in the flag.

Trading – Exit Rules Flag Exit, use Pole length + entry price = TGT. SL adjustment: When stock closes below swing target, move stop down to purchase price. When Bullish Candle indicates failure to reach target, move stop down to .20¢ above high of Bullish Candle (ie: Bullish Engulfing w/hi volume). • Consider: – Exit on Swing Target (support at lower low). – Upon reaching 50%-80% of TGT.

ASYS Trade Currently, 06/24 is high day: (closed @ $18.59) Entry price: $18.48 -.20¢ = $18.28. TGT: $18.28 (entry) -$5.00 (Pole length) = $14.28. SL: $19.88 + 1% (.1988¢) = $20.08. Swing TGT: $17.08 (support).

3 Month/Daily

ASYS Trade Assume duration to TGT could be as much as twice the pole length (ie: $5.00 in 20 days x 2 = 40 days). IF – not filled and another day is added to the flag, adjust figures based on the low of that day by .20¢ less. Suggest placing OCO with Entry/TGT/SL prices.

What Are Your Options? Short the stock. Bear Call Vertical Spread. Buy a Put. Bear Put Vertical Spread. Sit it out and wait for turn around. Other options as suitable.

REMEMBER!!! I’m not recommending your enter this trade set up – if you do so, you do it at your risk. This is how I see this stock – and I’m not always correct in my trading or interpretation of the technical chart. I will report on my outcome at the next OC Trader’s Saturday meeting – GOOD or bad. If you make some money – buy me a beer. If you make a lot of money, I need a new car. If you lose money – I probably will too!

Open For Discussion Anybody wish to offer their reading of the chart and how they would make this trade – if at all? Shall we take a vote? Thanks for your attention! Successful Trading!